Bounce Back Loan Scheme

(asked on 15th July 2020) - View Source

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the number of people unable to apply for a Bounce Back Loan as a result of an application for a feeder account being declined.


Answered by
Paul Scully Portrait
Paul Scully
This question was answered on 22nd July 2020

Decision-making on lending under the Bounce Back Loan Scheme is fully delegated to the Scheme’s accredited lenders.

In order to minimise administrative burden and therefore facilitate the issuing of as many loans as possible, the British Business Bank’s system only gathers data from lenders when loans are offered and drawn. Decisions on whether to capture information relating to rejected loans are at the discretion of the lender.

It is not a requirement of the Scheme for businesses to operate via a business account. However, some lenders may request that an applicant opens a business account in line with their standard policies. This is at the sole discretion of the lender.

A lender may consider paying funds into a personal current account if no business bank account is held, if it has been satisfactorily evidenced that the personal current account is being used for business purposes.

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